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Headphone Maker Koss’s Stock Surges 250%+ in Echo of 2021 Meme Stock Frenzy
Koss Corporation stock surged over 250% on Wednesday, reigniting interest in the meme stock amid speculation on social media platforms.
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Koss Corporation (NASDAQ: KOSS) stock surged over 250% today, reigniting interest in the meme stock that first gained attention during the January 2021 trading frenzy.
Despite the company’s weak fundamentals and lack of recent announcements, the dramatic price movement comes amid speculation on social media platforms (particularly a post on /r/superstonk titled “The GME – KOSS Connection: The spark to ignite the basket, and perhaps DFV’s next move?”) and renewed activity from influential retail investors.
Koss and Meme Stock Renaissance
Koss, a small consumer electronics company known for its headphones, saw its stock price skyrocket to $15.42 by midday, representing a gain of $11.06 or 253.67%.
This surge follows a 31% increase in after-hours trading on Tuesday, sparked by discussions on the popular Reddit forum r/Superstonk. The stock’s low float of approximately 5.26 million shares and high short interest of 7.7% as of June 15 have contributed to its volatility.
The renewed interest in Koss coincides with the recent return of Keith Gill, known as “Roaring Kitty” on social media, who played a significant role in the original GameStop short squeeze. Gill’s reemergence has reignited enthusiasm among retail investors for potential short squeezes in various meme stocks.
KOSS is Up 360.30% Year-to-date
The r/Superstonk post that preceded the price surge highlighted the strong correlation between Koss and GameStop stock movements and Koss’s unique characteristics that make it susceptible to a short squeeze. These include its lack of options chain, which limits manipulation tactics, and its small float, which could theoretically be locked up with a relatively modest investment of $20-40 million.
Koss’s market metrics reflect the stock’s dramatic movement, with its market capitalization rising to $142.709 million. The company’s year-to-date return has now reached an astounding 360.30%, far outpacing the S&P 500’s 15.94% gain.
However, it’s worth noting that Koss’s fundamentals remain weak, with declining revenue and continued losses. The company reported a trailing twelve-month revenue of $12.45 million and a net loss of $1.12 million.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
